Uzbekistan outlines investor selection criteria for its special industrial zone
By Aynur Jafarova
Uzbekistan has defined the criteria for the selection of business entities to grant the status of a participant in the Dzizak special industrial zone.
The certificate issued to a Dzizak special industrial zone participant is confirmation of the right to take advantage of a special tax system and remissions as regards activity in the zone.
One of the main criteria defined by the Uzbek Cabinet of Ministers in its regulations "On measures for the organization of the Dzizak special industrial zone" concerns the investment conditions. In particular, the authorized entity is obliged to make investment by the company's own funds and the loans taken without state guarantees.
The selection of investment projects for implementation in Dzizak is being conducted in two stages. During the first stage the investor must submit an application with the required documents attached. At the second stage the entrepreneurs will be registered as legal entities and members of the Dzizak special industrial zone.
The regulations also provide for the establishment of the State Unitary Enterprise Directorate of the Dzizak special industrial zone founded by the Uzbek Cabinet of Ministers.
The Dzizak special industrial zone was established in March 2012 in accordance with a decree signed by Uzbek President Islam Karimov.
The launching of the Dzizak industrial zone, which will have a branch in Syr Darya province, envisages effective utilization of the production and resource potential of Dzizak and Syr Darya provinces, creation of new jobs and increasing the income of the population.
The activity of Dzizak special industrial zone mainly aims to attract direct investments for launching high-tech and innovative production in order to produce competitive goods for domestic and foreign markets.
The decree envisages localizing the production of high-tech goods on the basis of domestic raw materials, providing for effective use of transport, engineering-communication and social infrastructure in the Dzizak special industrial zone.
The Dzizak industrial zone is to be in operation for 30 years with a possibility of further extension. During this period special tax regulations and customs benefits will be provided depending on the volume of investment.
Dzizak province is located in the center of Uzbekistan, 200 kilometers from the capital Tashkent. The total area of the province is 20,000 square kilometers. Agriculture is developed in the province. Construction materials are the main goods of the local industrial sector.
Currently, two industrial zones, Navoi free industrial and economic zone opened in December 2008, and Angren special industrial zone launched in April 2012, operate in Uzbekistan.